First-time landlords
Some lenders may consider a first-time landlord, although additional criteria and evidence can apply.
Buy to Let Mortgages
Whether you are a first-time landlord, an existing landlord or building a portfolio, Buy to Let lending depends on the property, expected rent, deposit, ownership structure and lender criteria.
What is a Buy to Let mortgage?
A Buy to Let mortgage is designed for a property intended to be let rather than used as your main home. Lenders often consider expected rental income alongside the applicant, property and mortgage details. Buy to Let borrowing is not a guarantee of rental profit or investment performance.
Existing and portfolio landlords
Existing mortgages, rental income and property values may be assessed together when you expand or refinance.
How much deposit might you need for Buy to Let?
There is no universal minimum deposit for a Buy to Let mortgage. The available LTV can depend on the lender, property type, landlord experience, rental coverage, applicant circumstances and whether you buy personally or through a company. Use our deposit calculator to estimate the funds needed, and our LTV calculator for an illustration of how LTV works.
This example is 75% LTV. It is an illustration only and does not promise a particular product or rate.
Keep an allowance for valuation, legal work, tax, insurance, maintenance and periods without rent.
How does Buy to Let affordability work?
Buy to Let affordability can include expected rental income, personal income, existing commitments, property value and LTV. A lender may apply a rental stress test to check whether the anticipated rent covers its calculated mortgage interest at a stressed rate.
Interest Coverage Ratio
ICR is a calculation comparing rental income with mortgage interest under the lender’s assumptions. The required calculation is not universal and can vary by applicant and product.
Rental evidence
A valuer or lender may assess achievable rent, property type and local demand. An advertised rent is not the same as a confirmed lender assessment.
Personal Buy to Let or limited company?
A limited company Buy to Let mortgage may be available through an SPV or another company structure, but mortgage availability, rates, fees and criteria can differ from personal ownership. Personal guarantees may sometimes be required.
What is an SPV?
A Special Purpose Vehicle is a company created for a specific activity, which can include property investment. The lender will assess the company structure and directors.
Tax and legal consequences
Personal versus limited company ownership can have significant tax, legal and administration consequences. A limited company is not automatically more tax efficient; speak to a qualified tax advisor, accountant or solicitor before deciding.
Compare the ownership structure, lender criteria, rates, fees and tax and legal implications in our limited company Buy to Let guide before deciding.
Can you get a Buy to Let mortgage as a first-time landlord?
Some lenders may consider applicants without previous landlord experience, while others may have extra requirements. Your deposit, property, rental estimate, income and plans will all form part of the assessment. A first-time buy to let mortgage should be considered alongside the responsibilities and costs of being a landlord.
How are portfolio landlords assessed?
A landlord with multiple properties may be assessed across the portfolio rather than one property in isolation. Lenders may review existing mortgages, rental income, outstanding debt, portfolio LTV and rental coverage. Our portfolio landlord guide explains the factors to discuss before relying on a figure.
HMO, holiday let and other specialist lending
HMO mortgages
Houses in Multiple Occupation can need more specialist lending. Property configuration, licence requirements where applicable, landlord experience and rent assessment may be relevant.
Our HMO mortgage guide explains how property layout, licence status where applicable, expected rent and landlord experience can affect the discussion.
Holiday let mortgages
Holiday let or short-term letting is not necessarily treated like a standard assured-tenancy-style rental. Income assumptions, property use and lender criteria can differ.
Our holiday let mortgage guide explains why proposed use, income assumptions and lender criteria should be confirmed before relying on a rental estimate.
What does Buy to Let cost?
Consider the full cost of borrowing and running the property, including:
- Mortgage, valuation and legal fees
- Property transaction taxes where applicable
- Landlord insurance and compliance costs
- Maintenance and repairs
- Letting or management costs
- Void periods and unexpected expenditure
Rental income and property values can change. No Buy to Let mortgage guarantees a profit or return.
Are Buy to Let mortgages interest only?
Interest-only Buy to Let mortgages are common, but monthly payments do not reduce the capital. The full mortgage remains due at the end of the term, so an acceptable repayment strategy and a review of total interest cost are important.
Buy to Let mortgage process
Understand your plans
Consider property use, ownership and landlord responsibilities.
Establish your deposit
Keep funds for the purchase and wider costs.
Assess expected rent
Use realistic information about the property and area.
Review affordability
Consider rental coverage, income, commitments and LTV.
Explore mortgage options
Compare lender criteria, structure, rates and fees.
Assess the property
Check use, condition and specialist requirements.
Apply
Provide accurate applicant and property information.
Valuation and underwriting
The lender checks the security, rent and application.
Legal completion
Complete the purchase and put the letting arrangements in place.
What documents might be needed?
Requirements vary, but may include identification, income evidence, bank statements, deposit evidence, property details, rental information, existing mortgage details and company documents where relevant.
Buy to Let mortgage FAQs
What is a Buy to Let mortgage?
It is borrowing for a property intended to be let rather than occupied as your main residence. Lenders may consider expected rent as well as your wider circumstances.
How much deposit do I need for Buy to Let?
There is no universal minimum deposit. Available LTV can depend on the lender, property, landlord experience, rental coverage and ownership structure.
How much can I borrow on a Buy to Let mortgage?
Lenders may assess expected rent, rental coverage, property value, LTV, income, commitments and experience. A rent estimate or income multiple cannot guarantee the borrowing amount.
How do lenders calculate Buy to Let affordability?
A lender may test whether expected rent covers mortgage interest at a stressed rate, alongside other applicant and property factors. Calculations differ between lenders.
What is rental coverage or ICR?
Interest Coverage Ratio, or ICR, is a way of testing whether rental income covers a lender’s calculated mortgage interest. The required calculation depends on the lender and applicant.
Can I get a Buy to Let mortgage as a first-time landlord?
Some lenders may consider first-time landlords, but criteria and evidence vary. You may need to explain your experience, property plans and affordability.
Can a first-time buyer get a Buy to Let mortgage?
It may be possible in some circumstances, but buying to let instead of occupying a property can have different lender, tax and legal implications. See our first-time buyer guidance if you intend to live in the property.
Should I buy personally or through a limited company?
Personal and limited company ownership can have different mortgage, tax, legal and administration consequences. Read our limited company Buy to Let guide for more detail. A qualified tax advisor or solicitor can explain the implications for you.
What is an SPV?
A Special Purpose Vehicle is a company set up for a particular purpose, such as property investment. Whether a lender will accept an SPV depends on its structure and criteria.
Can I get a mortgage for an HMO?
HMO mortgages can be more specialist because lenders may consider configuration, licensing where applicable, rental assessment and landlord experience.
Can I get a mortgage for a holiday let?
Holiday let lending is not necessarily treated the same as a standard assured-tenancy-style letting. Property use, income assumptions and lender criteria all matter.
Can I have several Buy to Let mortgages?
It may be possible to hold several mortgages, but lenders may assess your existing borrowing, rental income, portfolio LTV and rental coverage together.
Are Buy to Let mortgages interest only?
Many Buy to Let mortgages are interest only, but the capital remains due and you need an acceptable repayment strategy. Terms and availability vary.
Can I remortgage a Buy to Let property?
Possibly. A Buy to Let remortgage is assessed using the property, rent, LTV, existing mortgage and lender criteria. See the Remortgage page for general timing and cost guidance.
Ready to discuss your Buy to Let plans?
A mortgage advisor can review the proposed property, rent, deposit, ownership structure and circumstances, then explain potentially suitable mortgage routes. Criteria and products can change.